Wockhardt Eyes ‘Healthy Bottom Line’ In Coming Quarters Amid US Tariff Concerns
The company recently announced its exit from the loss-making US generics business.
Pharmaceutical major Wockhardt is targeting a “very healthy bottom line” in the coming quarters, following its exit from the loss-making US generics business, according to the company’s Founder Chairman Habil Khorakiwala.
Commenting on the company's Q1FY26 results, he clarified that the reported loss was due to a one-time goodwill write-off from the US business exit. He assured that this was a temporary measure with "no impact in the future whatsoever."
“Our operating losses for the partner in the US were much higher and these are all one-time related activities. When we introduce a new drug like Miqnaf, there are a lot of upfront costs before the drug starts generating revenue. If you discount all these things, in the coming quarters, we should have a very healthy bottom line,” he said during a conversation with NDTV Profit on Monday.
The company reported a consolidated net loss of Rs 108 crore in Q1FY26, compared to a net loss of Rs 16 crore in Q1FY25.
Dr Khorakiwala noted that the timing of the US exit is fortuitous given the geopolitical uncertainties surrounding trade tariffs. He emphasised that Wockhardt’s flagship antibiotic, Zaynich, will remain unaffected as it is manufactured entirely in Europe.
“So, let me continue the good news of the tariff issue. We are manufacturing Zaynich from Europe, so whatever happens between India and the US, it will be unaffected and we don't expect much impact of the tariff in the United States,” he said.
Dr Khorakiwala confirmed that clinical trials for Zaynich have been completed. Wockhardt is on track to file a New Drug Application (NDA) with the USFDA in September 2025, with approval expected by mid-2026. In India, the company filed for approval with the Drug Controller General of India (DCGI) in March 2025 and anticipates a commercial launch by early 2026.
“We are also in the process of building a global organisation to market this product worldwide,” he said.
Wockhardt is developing another antibiotic, Foviscu (WCK 4282, targeting gram-negative infections. Clinical trials for this drug are expected to conclude by October 2025, with a DCGI filing planned for early 2026.
Dr Khorakiwala downplayed the impact of US tariffs on the broader Indian pharma sector.
“Indian companies' exposure is about 40% of the total prescription of pharmaceuticals in the United States. It is not easy to manufacture these products overnight and therefore it takes about three years plus to get an alternate supplier or manufacturer. I do not think it would have a significant impact on the Indian pharma industry because otherwise, there will be a massive shortage of drugs in the United States,” he said.
Shares of Wockhardt were trading 0.69% lower at Rs 1,462.1 apiece on the NSE at 3:12 p.m. on Monday, while the benchmark Nifty50 stood at 24,595.35, up 0.95%.
